For the first time in 79 years, the Federal Housing Administration (FHA) will not show a self supporting year (2013). In order to make up for this defecit, taxpayers may be required to subsidize the lack of funds for up to $16.3 billion. But, within this costly news, there is also something encouraging.
Home prices are on the rise in this 2013 real estate market. This increase in property prices will surley make up for some of the defecit seen in the budget - a shortfall stemming from the 2007-2009 market crash. The price rise is really two-fold in nature: 20 of the major cities in the US have shown a 6.8% increase in price for the year, and home prices in general have jumped 6.5% overall.
So, what does the future look like for the FHA?
The FHA will…